When you work with a Real Estate agent, the term “agency relationship” may confuse you. Here’s a short explanation of the three types of agency relationships:
Buyer’s Agent: When you are planning to buy a home, you will work with a buyer’s agent. The agent that you choose has fiduciary responsibility to you. In other words, the agent will work for your best interests and will provide reasonable care, loyalty, and confidentiality. With a buyer’s agent, you can trust that s/he will not reveal information that may impact negotiations.
Seller’s Agent: When you are selling your home, you will work with a seller’s agent. The agent that you choose will have fiduciary responsibility to you. S/he will be responsible for providing reasonable care, loyalty, and confidentiality to you within the confines of the law.
Dual Disclosed Agent: When the same agent represents the buyer and the seller, the agent has fiduciary responsibility to both parties. S/he can not reveal anything confidential that may impact negotiations and must work in a way that helps both parties reach a meeting of the minds without compromising one party over the other.
What’s the most important factor in choosing an agent? Trust. Second most important factor? Competence.
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